CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

NATURAL GAS

Market Opportunities - 07/09/2022

07 September, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

NATURAL GAS weekly uptrend opportunity based On 1.00 Lot Calculation:

NATURAL GAS GLOBAL MARKETS:

  • LARGEST NATURAL GAS SUPPLIER IN THE WORLD (LNG + PIPELINE): 1. RUSSIA (173.81 million tons); 2. USA; 3. QATAR; 4. NORWAY; 5. AUSTRALIA;

  • LARGEST NATURAL GAS IMPORTER IN THE WORLD: CHINA (121.99 million tons)

  • CHINA’S LARGEST NATURAL GAS SUPPLIER: 1. AUSTRALIA (~26%); 2. TURKMENISTAN (~20%); 3. RUSSIA (~10%).

  • E.U. IMPORTS 45% OF NEEDED NATURAL GAS FROM RUSSIA (OF TOTAL 251.44 million tons): 113 million tons (average daily consumption: 32.85 million tons).

  • RUSSIA EXPORTS TO THE E.U. ACCOUNTS FOR 65% OF TOTAL EXPORTS: 113 million tons of 173.81 goes to the E.U.

US HURRICANE SEASON (June 1 to November 30):

  • RECENT HISTORY SHOWS THAT HURRICANES IMPACT THE OIL AND NATURAL GAS PRICES:

  1. HURRICANE “IDA” (August 26, 2021): NATURAL GAS ROSE FROM $3.943 TO $6.310 (+60.00%) WITHIN A MONTH. Ida's ferocious winds and storm surge made a direct hit on Port Fourchon, the nation's most important hub for the offshore industry in the Gulf of Mexico.

  2. HURRICANE “DELTA” (October 4, 2020): NATURAL GAS ROSE FROM $2.485 TO $3.391 (+36.05%) WITHIN A MONTH. Hurricane Delta shut most US offshore oil and gas output in 15 years.

  3. HURRICANE “IKE” (September 1, 2008): NATURAL GAS ROSE FROM $5.440 TO $7.186 (+32.10%) WITHIN A MONTH.

  4. HURRICANE “KATRINA” (August 26, 2005): NATURAL GAS ROSE FROM $9.190 TO $14.750 (+60.50%) WITHIN A MONTH. Hurricane Katrina caused severe damage to U.S. refinery and production capacity in the Gulf of Mexico.

*Please note that past performance does not guarantee future results

CURRENT:

  • NATURAL GAS FLOWS VIA NORD STREAM 1 CUT DOWN TO 0.00% INDEFINITELY. Nord Stream 1 flows were responsible for around 40% of total Russian flows to Europe. In addition, the markets fear that Russia could soon consider cutting flows by other channels, like Ukraine, to Europe. Gazprom Deputy CEO Markelov says Reuters Nord Stream 1 will not be launched until Siemens Energy repairs faulty equipment. There is also a fear that gas flow through Ukraine pipelines can also be reduced.

  • FREEPORT LNG to restart operation at full capacity in November 2022, instead of October. This will boost demand for US LNG by 2 billion cubic feet per day, which is 2% of US output.

  • AccuWeather meteorologists issued an update to the seasonal forecast on Sept. 2. They are forecasting a total of 12 to 16 named tropical systems in the Atlantic hurricane basin when the final tally is in this season, including five to seven hurricanes, two or three of which may strengthen into major hurricanes (Category 3 strength with winds of 111 mph or higher) and three or four direct impacts to the United States.

PRICE ACTION: The Natural Gas prices rose to a record high of $15.780 in 2005. After falling around 20% to $7.5 in June this year, Natural Gas began to recover. Currently is moving around $8.7 and if a full recovery to 2005 highs happens, this could provide an increase of around 81.34%.

NATURAL GAS, September 7, 2022
Current Price: 8.00

NATURAL GAS

Weekly

Trend direction

UP

Resistance 3

9.90

Resistance 2

9.50

Resistance 1

9.00

Support 1

7.20

Support 2

6.90

Support 3

6.50

Example of calculation based on weekly trend direction for 1 Lot1

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

19,000.00

15,000.00

10,000.00

-8,000.00

-11,000.00

-15,000.00

Profit or loss in €2

19,181.17

15,143.03

10,095.35

-8,076.28

-11,104.89

-15,143.03

Profit or loss in £2

16,547.42

13,063.76

8,709.17

-6,967.34

-9,580.09

-13,063.76

Profit or loss in C$2

25,028.42

19,759.28

13,172.85

-10,538.28

-14,490.14

-19,759.28

1. 1 lot is equivalent of 10,000 units

2. Calculations for exchange rate used as of 08:30 (GMT+1) 07/9/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

Share It With Your Network
NATURAL GAS Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now